Community Loans

Eligible projects

The scheme can be used for the establishment or development of recreational facilities in the Whangārei district by community organisations.

Ineligible projects

The scheme is generally not available for:

• Retrospective costs
• Debt servicing
• Repairs and maintenance
• Projects in educational institutions normally funded within the education sector.

The following criteria determines eligibility to apply for a loan and the level of support Council may be willing to offer.

• You must be a not-for-profit incorporated society or charitable trust with a constitutionally open membership.
• You must be in a stable and sound financial position.
• You can contribute 50% towards the project (this can be from grant funding such as Lotteries).
• You can demonstrate the ability to repay the loan within 8 years.
• You can demonstrate the ability to maintain and run the facility well into the future.
• You have a good track record for project/event management.
• The recreational facility is to be within the Whangārei District.
• There is demonstrable need and benefit for the wider community or a sector of the community.
• The community and/or affiliated regional or national bodies supports the proposal.
• The project aligns with Council priorities as identified in our strategic and planning documents.

The following conditions apply to all loan approvals:

• Generally, the first $100,000 will be interest free and any further portion will be interest bearing.
• Generally, the maximum repayment period shall be 8 years.
• Frequency of repayments will be negotiated with the borrower.
• Legal expenses will be the responsibility of the applicant but may be included in the loan.
• Loans will be formally executed and will be secured as Council deems appropriate.
• Loans are generally not available to retire or restructure current debt, but Council may consider this in exceptional circumstances, such as where the ongoing viability of an organisation is under threat.
• Loans may be subject to other conditions imposed by Council.
• Loan drawdowns may be by instalment at Council’s option and Council may require copies of applicant’s invoices from suppliers to which the loan relates.
• For GST registered organisations, the GST portion of costs will not be funded by the loan.
• Financial statements will be provided to Council annually during the term of the loan.
• In the case of any default on repayments, Council will work with the organisation to remedy the situation as quickly as possible.
• If the financial position of an organisation deteriorates to the point that the loan repayment is not possible, Council will exercise its rights as specified in the loan agreement.
• Any arrears of repayments will be reported to the Community Development Committee of Council.